The Spelinspektionen refers to a decision of the Administrative Court that saw a compensation package previously issued to Casino Cosmopol being reduced from SEK 8 m (£ 638,680) to SEK 3 m (£ 239,505).
Stressing that it “does not consider that the reduction is justified,” the Swedish regulator also said that it was “not clear from the judgement of the Administrative Court why the court chose to reduce the penalty fee.”
In appeal to the Administrative Court of Appeal in Jönköping, the authority also expressed puzzlement at the court in Linköping’s view that the company was guilty of serious and systematic breaches of the regulations.
Earlier this month, the Swedish Administrative Court in Linköping reversed the decision following an initial ruling made last year by the regulator of the country.
The state-owned Svenska Spel’s land-based branch, whose portfolio stretches to the towns of Sundsvall, Malmö, Göteborg and Stockholm, obtained the penalty fee for what the Spelinspektionen highlighted as failures in their efforts to combat money laundering.
In its initial decision it was reported that a review “shows that Casino Cosmopol is lacking in its efforts to counter money laundering and terrorist financing in all audited areas. The shortcomings are serious and in many cases of a systematic nature”.
Risk-based tasks, trade relations and customer awareness measures, the obligation to deny transactions and to keep accurate documentation were among the major areas of concern outlined.
The Administrative Court eventually reduced the penalty fee to SEK 3 m by announcing its intention to appeal the decision a short time after receiving the sanction.
In a media release detailing the reduction it was stated: “The Administrative Court has essentially accepted the deficiencies identified by the Spelinspektionen and considered that there is reason to decide that the company should pay a penalty fee.
“However, based on an assessment of the nature, nature and extent of the violations, the administrative court has reduced the penalty fee to SEK 3m.”